22 U.S.C. § 286gg — Elimination of trade restrictions

(a) Promotion of fair trade as financial assistance policy (1) The Secretary of the Treasury must instruct the United States Executive Director at each multilateral development bank ("the banks") and at the IMF ("the Fund") to start wide consultations with their managing directors and other directors. The goal is to develop financial assistance policies that, as much as possible: (A) reduce barriers to and restrictions on international trade and investment in goods and services; (B) eliminate unfair trade and investment practices; and (C) promote mutually beneficial economic relations. (2) The Secretary must work closely with the Trade Policy Committee on this effort. (3) The Secretary must also instruct the U.S. Executive Directors to encourage close cooperation between bank/Fund staff and the Secretariat of the World Trade Organization. (b) Agreement to eliminate unfair trade practices as a condition of financial assistance (1) Before the banks or Fund give financial assistance to any country, the Secretary must instruct the U.S. Executive Directors to work to get that country's agreement to eliminate unfair trade and investment practices — in a way consistent with the country's balance-of-payments program. This applies to practices the U.S. Trade Representative, after consulting the Trade Policy Committee, has found to significantly harm the international trading system. (2) Such unfair practices include: (A) predatory export subsidies for agricultural goods; (B) other export subsidies, like government-subsidized below-market financing; (C) unreasonable import restrictions; (D) trade-related performance requirements imposed on foreign investment; and (E) practices inconsistent with international agreements. (c) United States position on loan and drawing requests (1) When deciding the U.S. position on a country's request for loans or periodic drawings from the banks and Fund, the Secretary must fully consider how much progress that country has made toward eliminating the unfair practices in subsection (b). (2) If the United States supports a loan or drawing request for a country that has not met its targets under subsection (b), the Secretary must report the reasons to the appropriate congressional committees. (d) "Multilateral development banks" defined For this section, "multilateral development banks" means the International Bank for Reconstruction and Development, the Inter-American Development Bank, the African Development Bank, and the Asian Development Bank.